U.K. Sky Reaffirms June Digital Launch

2/08/1998 7:00 PM Eastern

By: CHRIS FORRESTER

London -- British Sky Broadcasting will launch its digital,direct-to-home satellite service in June, company officials said last week, putting an endto speculation that the launch might be delayed until later in the year.

'Let me make it crystal-clear: We are on schedule andon budget for launch,' said Sky's new CEO, Mark Booth, Feb. 3 at his first pressconference, which was called to announce the company's six-month financial results.He predicted that 'a modest number of digital boxes will be in the stores inJune.'

In the days leading up to the press conference, investorswere nervous about another possible delay of the launch, which drove Sky's sharesdown. However, Sky's shares recovered following Booth's comments, closing up20.75 pence (34 cents) on the day at £3.6275 ($5.98).

Booth refused to give detailed plans for Sky's digitallaunch in terms of pricing, channels, or marketing, other than to say, 'Analog willlook like yesterday' after Sky's digital bouquet is launched. Booth did say thathe expects digital simulcasts of the British Broadcasting Corp. U.K. terrestrial channels,BBC 1 and 2, 'and probably channels 4 and 5,' to be in the bouquet.

Booth expects subscribers to top 7 million this year, upfrom the current figure of 6.72 million.

Also on Feb. 3, Sky issued a writ against its formerpartner, Carlton Communications, claiming that a payment of £30 million ($49.5 million)is due from Carlton as its portion of an agreed settlement after Sky was forced last yearby regulators to exit the British Digital Broadcasting digital terrestrial TV consortium.Booth said he hoped that Carlton 'would come to their senses.' If Carlton failsto pay, 'we will go to court, but it's not the best way to build arelationship,' Booth added.